Crime & Safety

Man Convicted In Federal Tax Evasion

The former Hermosa Beach resident is convicted of failing to report nearly $1 million to the federal Internal Revenue Service.

A man who used to live in Hermosa Beach was found guilty Thursday of failing to report about $1 million in income to the Internal Revenue Service.

Joseph Ford Proctor, 66, raised funds from investors for various companies.

He was convicted in Los Angeles federal court of filing two false income tax returns, according to the IRS.

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The IRS said that Proctor failed to report $950,500 in income in 2002. He allegedly listed just $5,500 and paid no taxes.

Then in 2003, he reported having only $7,450 in income and again paid no income tax, according to authorities.

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Evidence presented in the three-day trial showed that Proctor raised funds from investors for Powerhouse Studios, Inc. and Powerhouse Technologies Group, Inc.

Investors in those firms were told to send their funds to a bank account held in the name of Brickhouse Venture Capital Limited.

Brickhouse was a company opened in the name of Proctor's brother, but Proctor oversaw how the funds were used, officials said.

Proctor would transfer the money in the Brickhouse account to various bank accounts he controlled, according to evidence.

The IRS said the transferred money was spent to fund the lifestyles of Proctor, his wife and their daughter. Proctor even referred to his wife, a citizen of Thailand at the time, as his "walking tax shelter," according to documents filed with the court.

Proctor, who is scheduled for sentencing Jan. 23, faces a maximum sentence of six years in prison and fines totaling $500,000, officials said.

— City News Service contributed to this report.


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